Bankruptcy can help you get back on the right financial track after you’ve accumulated overwhelming debt. Although bankruptcy is scary to most people, it can actually help you in an abundance of exciting ways if you’re ready to get back on the right track. Take a look at the five bankruptcy facts below and get on the right road to financial success.
1. Chapter 7 and Chapter 13 are the two most common types of bankruptcy filed today. Chapter 7 relieves debts while Chapter 13 works out a payment solution. Talk to a lawyer to learn more about the types of bankruptcy.
2. Before you can set a date to appear in court to declare bankruptcy, you must first complete a credit counseling course. This course is designed to teach you how to better manage your debt so the same problem doesn’t occur again in the future.
3. Although not required by law, it is ideal to hire a bankruptcy law firm toledo oh to help with the bankruptcy process. They make it easier to handle this oftentimes complex problem.
4. Bankruptcy stays on your credit report for a period of 7 years, during which time credit may be limited for some time. Rest assured, however, that this slowly changes over time and your credit isn’t forever ruined.
5. You can file bankruptcy only once a judge has signed off on the order. You may also file bankruptcy only one time in a specific period of time, usually 10 years. Your lawyer will fill you in on the law and other important information that you should know.
Bankruptcy may not be the first option that you had in mind to get out of debt, but it’s nice to know that it’s available in the event that it’s needed. The information above can help you get back on the right financial track to success using bankruptcy as a solution.